news


Rupee moves up slightly
Mumbai: The rupee gained by about 10 paise against the dollar on Wednesday to close below 46. Last time the rupee closed below 46 was on July 10. The rupee opened at 46.07/08 and closed at 45.97 against the previous close of 46.08.

Forwards: The forward premia were slightly lower with the six-month premium closing at 1.21 (1.23 per cent) and the 12-month closing at 1.25 per cent (1.25 per cent). According to the dealer, the new cap for the rupee could be 46.10 and 45.95 could be the new support level.

Bonds: Bond prices continued its rally with a single day gain of 75 paise on Wednesday. The total traded volume on the order matching system was Rs8,605 crore (Rs5,400 crore).

G-secs: The 7.59 per cent - 10 year-2016 paper opened at a gap at Rs99.50 (7.66 per cent YTM), up from Tuesday's close at Rs99.07 (7.73 per cent YTM). It finally ended at Rs99.85 (7.61 per cent YTM). The 8.07 per cent-11 year-2017 paper opened at Rs102.50 (7.71 per cent) and closed at Rs102.84 (7.66 per cent YTM), against Tuesday's Rs102.04 (7.77 per cent YTM).
Back to News Review index page  

RBI makes loans more expensive for SEZs
New Delhi: The Reserve Bank of India (RBI) has hiked the interest rates on loans to SEZ promoters also for units setting up shop in these zones.

In a note to commercial banks, the RBI has told them that "exposure…to entities for setting up SEZs or for acquisition of units in SEZs which includes real estate would be treated as exposure to the commercial real estate sector with immediate effect.

Bank lending to the commercial real estate sector attracts a risk weight of 150 per cent which means that they have to provide for 50 per cent more capital as compared to normal commercial loans.

The RBI raised risk-weights for loans to the commercial real estate sector in July, 2005, to 125 per cent. The weights were increased further to 150 per cent to stem the flow of funds to pricey real estate. By adding SEZs to the list of speculative risk-weightage, the RBI is telling banks to go-slow on their lending to such projects.

The SEZ policy has already kicked up a storm within government and outside. While the commerce and finance ministries are battling over possible tax losses, the Communist parties, who support the government from outside, have opposed giving so much land on ownership basis to private sector promoters.

IMF chief economist Raghuram Rajan has also weighed in against the idea, saying the tax sops proposed may be unaffordable.
Back to News Review index page  

Maruti ties up with Magma Leasing for car finance
Kolkata: Maruti Udyog (MUL) has signed up with Magma Leasing for financing of Maruti cars in all price segments across the country.

MUL said it is determined to motorise India in a big way by tapping opportunities in rural and semi-urban markets, where Magma has a significant presence.

Under the Maruti Finance scheme, MUL has arrangements with finance companies such as ICICI Bank, HDFC Bank, Citicorp Finance, Kotak and Cholamandalam, and Magma was now added to that list. MUL also has a successful stand-alone arrangement with SBI and seven of its associate banks for car finance.
Back to News Review index page  

i-flex launches banking product
Mumbai: Software firm i-flex solutions, has launched a new product particularly for banking transactions.

Called "i-flex process framework for banking" (iPFB), the new product, according to the company, will help banks tackle challenges such as improving process efficiency while simultaneously managing operational risks.

Banks can also use iPFB to control operational risk and integrate diverse applications into a common operating environment. It offers both business process definitions and corresponding executable processes, which are implemented using the industry-standard Business Process Execution Language.
Back to News Review index page  


 search domain-b
  go
 
domain-B : Indian business : News Review : 21 September 2006 : banking and finance